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Category: Bankruptcy Law
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I am a privately owned distibutor for Archway and Mothers Cookies.

Resolved Question:

I am a privately owned distibutor for Archway and Mothers Cookies. They filed for chapter 11 on Monday. I have alot of cookie inventory on hand and am not sure what I should do with it. Can I sell it? or do I need to wait to see what happens. We were not even notified of anything and had to find out by researching on line news. I also do not know if I will get paid for last weeks work.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 5 years ago.

A Chapter 11 is a reorganization of debt in an attempt to pay off creditors and stay in business. It is not a complete liquidation (Chapter 7). Thus, the cookie company will continue to operate, therefore, you should not be effected either.

 

My suggestion is to contact the attorney for the company, explain your situation and relationship to the debtor, and get authority (preferably in writing) to continue business as usual. I think the attorney will be willing to do this.

 

Because it is a reorganization, I think you'll be fine, but confirmation from the debtor's attorney will be reassuring.

Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 26113
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by West
Roger and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
All of the stores that I deliver to have received a letter stating not to accept any product from a distributor.
Customer: replied 5 years ago.
In the article in the Battle Creek Enquirer.com, states that Archway & Mothers hopes to retain the services of Focus Management Group, to assist in the wind-down of the U.S. operations. It also states that distributors across the country have lost there jobs. I am just trying to understand not having any communication from anyone, as well as not being able to get a hold of anyone.
Expert:  Roger replied 5 years ago.
In light of this, my suggestion is that you must get in contact with an attorney for the bankrupt company and get some answers directly from them. It may take you hiring an attorney to contact this other attorney for results (lawyers are usually more willing to talk to another attorney as opposed to a non-lawyer).
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 26113
Experience: BV Rated by Martindale-Hubbell; SuperLawyer rating by West
Roger and 2 other Bankruptcy Law Specialists are ready to help you

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